Ethereum price has continued to correct in recent weeks following a definitive rejection of the $4,000 resistance level in March. However, the market may be about to make a U-turn.
Ethereum Price Analysis: Technical
Provided by:TradingRage
daily chart
On the daily chart, the price has formed a large descending channel pattern since the beginning of the correction. The lower bound of the channel was recently tested and pushed ETH to the upside.
The market is also above the $3,000 support level and investors are expecting a rally towards the $3,600 resistance zone in the short term. However, as long as the channel remains intact, we do not expect further bullish continuation.
4 hour chart
The 4-hour chart provides further clarity on recent price trends. It is clear that the market is forming a bottom, with the $3,000 support level preventing the price from falling any further.
The cryptocurrency is currently trending towards the midline of the descending channel, and a break above this would pave the way for the price to attack the $3,600 resistance level once again. There is also momentum in the bullish move in the coming days as the Relative Strength Index stands above 50%.
sentiment analysis
Written by Shayan
Ethereum open interest
The impact of futures market sentiment on large price movements cannot be underestimated, as the strength of long and short positions, combined with the likelihood of significant liquidations, acts as the main catalyst for market volatility.
A key metric in assessing this sentiment is open interest, which quantifies the number of open perpetual futures contracts across various crypto exchanges.
Considering Ethereum’s recent downtrend, it is noteworthy that the open interest indicator has followed a similar trajectory and experienced significant declines. This coincidence suggests a slowdown in activity within the futures market.
As a result, ETH appears poised for a resurgence of long or short positions, potentially starting a new and decisive market move in either direction.
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Cryptocurrency charts by TradingView.
